As you can see from the first chart above, Position Realty Market Index, the residential real estate market is currently experiences another buying frenzy that is caused without government intervention or relaxed mortgage underwriting standards. Consumers are jumping into the real estate market because market statistics are indicating the market has hit bottom. As found in the Average Sold Price chart above, real estate prices have been increasing steadily since October 2011 due the increase in demand. The current supply of homes for sale on the market is 19,741 where a year ago there were 48,000 homes for sale.
Since November 2011 (6 months ago), the average sold price has increased approximately +18.7% (up from last month), the average days on market have decreased approximately -7.7% (down from last month) and the number of transaction has increased approximately +15.9% (down from last month). The largest average price increase over the last 12 months was experienced in March from $168,961 in February to $184,078 in March.
The volume of REO purchases since November is down -17.7% and the volume of short sale is up +3.8%. The volume of REO purchases are shrinking due to the increased volume of trustee sales, more banks are accepting short sale transaction and existing supply of inventory is getting absorbed at a faster rate.
The real estate market has reached a level of equilibrium where demand exceeds supply and all buyers are rushing into the market to take advantage of low prices. As more and more buyers enter the market and as more of the supply of residential homes are exhausted, real estate prices will continue to increase at a faster rate (depends on the sustained level of demand).
Trying to “time the market” for the perfect time to buy is nearly impossible but there is no better time than now to purchase. Real estate prices are at an all time low (not for long), mortgage rates are at a historical low and the market is improving both in terms of prices and the overall economy. Time to buy is NOW!! Give us a call to discuss your best buying strategy, TODAY!!
Sean Heideman, Broker ~ Office: 480-213-5251 ~ Sean.Heideman@PositionRealty.com